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Home My WebLink About1978/04/18 - ADMIN - Minutes - City Council - Joint1. 2. Call to Order Roll Call MINUTES CITY COUNCIL/HOUSING AND REDEVELOPMENT ST. LOUIS PARK, MINNESOTA April 18, 1978 AUTHORITY A joint meeting of the City Council and and Redeve�.opment Au�hority was called by Mayor Stern at 7:05 p.m. Housing to order The following Councilmen were present at roll call: Martha Jerrold Elstrom Martin Irving Lyle Hanks Keith Meland Stern The following Housing Authority commissioners were present at roll call: Commissioner 7:09 p.m. Dudley Moylan Thomas Williams Joel Glotter Tschida arrived at 7:08 p.m.; Councilman Griak arrived at Also present were the City Manager and the Executive Director. r� 3. Review of Integrated Plan - The Executive Director explained Develo ment Proposals that interested developers were invited to partici-- pate in a workshop session to allow their input and possible revisions of development plans to be con- sistent with an integrated development plan. Ne indicated several of the developers have submitted revised proposals to provide for shared parking facilities and integration of var3.ous land uses. He stated the revised Cherne proposal provides a slightly diff erent location for the bank and office building and also identifies a possible hotel/restaurant facility• The Executive Director stated this plan is more consistent with West 38 and 39 Streets and provides a mall area integrating office space with other compatible uses . He also indicated revisions to the Rooney p.roposal and the Ryan Constructi'" i Company proposal have been submitted for the Park Center area. Integrated Financial Plan - The Executive Director explained each developer has submitted economic information for preparation of the inte rate financi�� plan. He stated that in general, most of the developers are willing to make an immediate purchase of the land to be acquired which would reduce interest payments and bond principal. -150- � �� : City Couneil/HRA minutes, April 18, 1978 The Executive Director informati��n received, variables do exist. continued that based upon the preliminary economic the int�grated plan is financially feasible; however, In response to a question from Commissioner Glotter, Mr. Cherne stated he already owns part of the land f or his development plan and would start development on those se�tions immediately with the intention of purchasin� the remaining land and phasing construction over a three-year period. He proceeded to outline his proposal and indicated the land and structures which he already owns. Development Proposals - Bill Fine, Fine Associates, explained the proposal for a National supermarket at the existing Pentel Pontiac site. He stated a 50,000-square-foot b uilding is proposed, and 250,000 square feet of land is necessary to construct the facility. He explained approximately 40,000 square feet of the proposed site is currently owned bfeetewillybenacquired�byes the water tower site. The additional 210,000 square the HR.A and conveyed to Fine Associates. Mr. Fine stated he would be prepared to pay $4 per square foot for the HRA property, and payment would be made over 240 months at an interest rate of 5.5 percent per annum. Mr. Fine continued that he is convinced the project could stand by itself and projected approxi- mately $660,000 of improvement costs by the City. He also stated his company could proceed with development immediately. Chairman Glotter s�ated it is evident the Fia� andHehcontinued�that and shared parking facilities will be necess y of the Fine proposal will eliminate the Cherne proposal for future devel.opment at the same site. overlap, approval Smith real estate dlrector for�National Super Markets, Inc., explained Terry � National's program of modernization and basidersraestheticsiveryb important sup ermarket. He continued his company cons and will b e most cooperative with the City to prov�dS�ern�eMr1nSmiChestated� the building. In response �° a oUageupermarketasite on the south side of prior to any decision relative t oulevard, the size and dimensions of the site must be examined. Excelsior B nks stated the residents of the area prefnaYizedcinrersection at Councilman Ha with a sig south side of Excelsior Boulevard; hroblems could be resolved. He stated Yie the supermarket access point, many p supports the ex amination of the supermarket on the south side of the street. • �he r Mo lan wondered if National would �n the1Pa�k�CenCer�area. He Commissione Y e�arket would 1ocate south side if another sup e Council and the Authority have the.obligation to pursue tie continued that th prop osal on the north side of the street at thi8 time fi ite otential, Councilman Eletrom gtaat�onf the Citiy has the obliR bl development and � the south side �o��TUC��on��nd the Raoney proposAls ta in�orm Ryan Cons the implications on their marketi�. of pc�ssi e resented a }�r.oposal foz � James Ryan, President, RYan �onatruct�-on Company, P erl 's would Iike � erma.rket on a eite in Park Certter�d �o��nP��1 of 1979. 'rhe cost� Byerly s sup with open�_n� schedtal. to construct immediately end:Ltures Cor cic�mol�.L'i.��, ��-a•i �y of the revised proPos�tl c�nr°�n n�herefore, public improvemenl coaLs ax'e minimal. relocation or atireet relocatiort; � -151- - -- —� ... ....�....�� i � � � �� Ciey Council/HR.A minuCes, April 18, 1978 He continued thaC thc proposed Sho�rforkfuturel should serve as an excellent anc area. be 70,000 square feet and retail development in tha�. Mayor Stern stated he noticed the proposal called for a land pric� oC $'l Per square footi if industrial. revenue bonding was $1.75 per sc�uare fooC without revenue bonding. He said this penalizes Ch� City if revenue boncling is not secured. In answer the m�r.lcet foor whicl� acquisition secured or pra.ce differential to a quest3.on from Chairman Glotter, the Executive Director stated value oL- the development would be approximately $13 per square is somewhat improved from the original proposal submitted. Mr. Ryan stated approximately the same parking ratio as originally proposed is desired; however, this point could be negotiated. He continued that Byerly's is interested in development approval within 45 days. In response to a question from Councilman Elstrom, Mr. Ryan stated there is no interest for development of a supermarket on the south side of Excelsior Boulevard, due to limited space. Bill Craig, AA.A, stated the authorization of an industrial revenue bond sale allows the developer to essentially enjoy a subsidy on bond interest, in that a lower interest rate is achieved than the prevailing loan rates. Mayor Stern stated the City should continue to examine other land-sale options such as the use of land lease. Patrick Rooney presented his proposal for development of a retail center at the Park Center site. He stated he was requesting no f inancing from the City, only the guarantee to have the land acquired through condemnation. He stated the development would require 275,000 square f eet and would include a supermarket and approximately 70 shops. He stated he would acquire the land at the appraised value, and the supermarket would be across Park Center Boulevard from the other retail facility. In response to a question from Chairman Glotter, Mr. Rooney stated the development would consist of specialty shops comparable to the Yorktowne center in Edina. He added there would be no discount operations. Mr. Rooney continued that the grocery store would be 45,000 square feet and would be a Red Owl Supermarket. In response to a question from Councilman Hanks, Mr. Rooney stated he did not feel there was a large enough market for two large grocery stores in the area; however, there might be opportunity for a small store of 10,000 to 12,000 square feet to develop on the south side of Excelsior Boulevard. Mr. Rooney stated he would be able to give the Council and Authority a letter concerning his financi.al resources. Anthoney Cherne requested a letter of intent from the Council and Housing and Redevelopment Authority to permit his development. Iie stated the proposed bank tenants need to have a de�inite location for the Banking Regulation Board and require immediate construction. Ne submitted the owners of King's Inn,wh3.ch is contiguous to the develapment site, ar� in favor of the pro j ect. In response to a question from Mayor Stern, accept the Council and Authority's decision the Pentel Pontiac site at a later date, if off ice building was issued at this time. -152- Mr. Cherne stated he would over the disputed area at the letter of intent fc�r the __.._._---- 3 City Counci�/HRA minutes, April 18, 1978 Chairman Glotter expressed concern that the City would be purchasing propetty currently owned by Mr. Cherne at market value and then writing down the price in the sale back to Mr. Cherne. He suggested a land lease might overcome these problems. The City Manager inquired as to whether the write down would only apply to that property presently occupied by buildings. Con�nissioner Tschida clarified that if the letter of intent is issued, a supermarket is not excluded from the Pentel Pontiac site. Mayor Stern stated that subject to the submission of satisfactory financial arrangements to be approved by the Council and Authority, he would support the letter of intent. Councilman Hanks stated he has prob lems with approving one development proposal prior to approval of an overall plan. The Executive Director explained the letter of intent would require the developer to submit certified financial statements and evidence of willing- ness to execute a contract guaranteeing development, the establishment of a performance bond to cover anticipated development costs, and an indication of ability and willingness to proceed with development in the immediate future. It was moved by Councilman Meland, staf f to draf t a letter of intent be approved on April 24, 1978. Councilman Hanks stated he is approaching it on a piecemeal bypassed at this time. seconded by Chairman Glotter, to request for development of tY» Cherne proposal to in favor of development but opposed to basis. He f elt other developers were being Councilman Meland stated the proposal �o riatencoHeicontinuedh Illustrative Plan and therefore is aPP p i existence, elements of the I1lustrativeandatherAAAubuilding.� the Medical Center building the adopted that key specifically Commi.ssioner Tschida agreed the planning aspect of the Development District has been accomplished, and since the Cherne propofaintent,nsistent with the I1lustrative Plan, she would support the letter o Councilman Griak agreed it is not premature to approve the proposal since no conf licts exist. The motion passed 9-1 (Councilman Hanks opposed). introduced Richard Graves who is employed ben�hfinancee of Mayor Stern the use of tax increm Minnesota Municipalities to study ves ave a brief overview of a tax incrementvelocedsaafinancial con- Mr. Gra g complexities involved. He stated the League h�o ect the success of tax sultation service to communities in order to p � increment districts. -153- � City Council/t�� minutes, Mayor Stern r.equested thasalrforr�his Housing Au�hority a propo meeting. April 18, 1978 present to the Council and the f inancial program at the next j oint It was decided the next joint meeting would at 7 p.m. be held on Tuesday, May 2, 1978, Councilman Hanks clarified that all.develop�onsubmitofinanciallstatements. continued �o be considered and a11 invited 4. Adjournment Attest: �irl t � ! r-c�t2 - � Wendy Bo n Recording Secretary Upon a motion by Councilman Meland, seconded by Chairman Glotter, the meeting was adjourned at 9:4� P.m. Irvting Mayor � _ j�-�. SCern -154- ��